Three Boxes or Two?

The Indian car buyer’s affinity towards sedans is well documented. Roughly one in every four cars sold here in September 2017 was a sedan and the largest selling car in that period was the Maruti Dzire, a sub-four meter saloon. The reason behind this popularity is simple, owning a sedan has traditionally been a sign of growing prosperity and improved social stature. This mindset is a legacy of the Indian car industry during the License Raj: where the Hindustan Ambassador and Premier Padmini (both sedans) were a symbol of power as well as prosperity.

Lately, things have been changing. Newer car buyers are ready to forgo the perceived benefits of a sedan and instead opt for a premium hatchback. This trend was first seen with the launch of the Maruti Swift in 2005 and has now grown to become an entirely new segment with competent players like the Maruti Baleno, Hyundai i20 and the Honda Jazz. Interestingly, the Swift itself now fits in a segment lower than the one it helped create. Having said this, there is still some way to go. An entire segment of large hatchbacks, as seen in developed markets like the US and Europe, is absent from this country. These include very competent cars like the Ford Focus, VW Golf and the Renault Megane, to name a few. The creature comforts, tech and drivetrain choices these cars offer is comparable to any Indian market D-segment sedan.

2018 Renault Megane RS
Credits: Manufacturer

The fact that hatchbacks have only garnered the lower/mid end of the Indian market is surprising given how these cars provide some clear benefits over sedans. Their compact dimensions are more practical in Indian city traffic, and they are more fuel efficient having less weight to carry around. Hatchbacks also offer a lot more flexibility, the cargo space in sedans is rarely fully utilized and hatchbacks can easily compensate for this with flexible seating. Sedans also provide no discernible advantages in terms of cabin space vis-à-vis comparable hatchbacks and are dynamically no superior either. Exterior design is another aspect where hatchbacks flourish, the shape allows for a more cohesive design with designers not having to work with large expanses of sheet metal.

Arguably the biggest hinderance to larger hatchbacks becoming popular in India are the engine capacity caps and car length caps set down by government legislation. These have been beneficial: almost half of all cars sold in India are sub-four metre hatches and India is a global small car production hub, but this law has shifted focus from larger cars and made their production not as attractive.  

Better awareness among the car buying public and less constrictive legislation will go a long way in helping the Indian car market open up to larger hatchbacks and the generally superior standard of automotive engineering these cars promote. This will also help curb issues like overcrowded streets, increased pollution and the shocking rate of road accidents.